Norge Case Study

Topics: Portuguese people, Organizational culture, Geert Hofstede Pages: 2 (739 words) Published: April 12, 2015
Norge Case Study
Frank Qian Zhang, frank.zhang@sce.com
BUS 500, Dr. McGuire
March 4, 2015
Problem statement
Norge Portugal is a company that sells, installs and services sophisticated equipment for the textile industry. Its Portuguese subsidiary embraces a “total service” business model to its customers.1 As a result, this small company of 57 employees generates a high profit margin due to the stellar service it provides to its customers, titling themselves as the “Norge family”. Joao Silva is the Administrative Director. With the support from Managing Director Lars Jorgensen, Joao started to implement changes to the company’s personnel function in an analytical and result oriented manner. But after the climate survey result returned back from the management consultant, it showed several concerning areas that need to be addressed. One of the fundamental problems with Joao’s changes could be the lack of cultural consideration in his decisions. Any business management decisions taken have to be based on the country’s custom and values.2 Hence, Hofstede’s model will be applied to several aspects of Joao Silva’s decisions, to analyze the cohesiveness between his changes and the cultural acceptance of the Portuguese. Analysis using Hofstede’s model

Power Distance
In Portugal, the power distance between ranks is above average compare to other countries, with a score of 63 from www.geert-hofstede.com. This reflects the Portuguese culture of respecting authority, and negative feedback would be difficult for employees to give to higher ranking directors. This was consistent in the climate survey, as it shows that higher ranking officers within the company mostly had higher grades. Therefore, Joao needs to take that into consideration while analyzing the survey result. Individualism vs. Collectivism

Individualism has a very low score in Portuguese culture. This means the people of Portugal prefer to work in teams, and discuss decisions in a group...
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